Chip Shares Rally as Global Stocks Eke Out Small Gains
November 12 2019 - 7:19AM
Dow Jones News
By Caitlin Ostroff
Global stocks posted slight gains Tuesday, while the microchip
sector rallied on a brighter earnings outlook.
U.S. futures for the S&P 500 were up 0.1%. The Stoxx Europe
600 rose 0.3% and the U.K.'s FTSE 100 edged up 0.4%. German
freight-and-logistics group Deutsche Post saw shares rally 4.6%
after the company reported a jump in third-quarter earnings.
In premarket trading, shares of industrial gases and engineering
company Linde PLC rose 2.4%. It reported higher third-quarter
profit as sales more than doubled. CBS Corp. will report later
today.
German chip maker Infineon Technologies shares gained 7.4% after
it reported a rise in fourth-quarter profit despite macroeconomic
uncertainty and weakening global auto demand. Shares in U.K. chip
specialist Dialog Semiconductor and Netherlands-based ASM
International also rose.
Shares of French telecommunication company Iliad surged 17.7%
after it released third-quarter revenue and said it would buy back
up to EUR1.4 billion ($1.54 billion) in shares.
Investors will look to President Trump's speech at the Economic
Club of New York later today for clues on U.S. trade policy.
"There's cautious optimism that we will get some fairly positive
outlooks from President Trump," said Michael Hewson, chief market
analyst at CMC Markets. He said markets are hopeful that no tariffs
will be placed against European auto makers and are watching to see
whether Mr. Trump goes forward with tariffs on Chinese goods, set
to go into effect on Dec. 15.
Stocks traded up in Asia, where the Hang Seng rose 0.5% amid
ongoing pro-democracy demonstrations. The Shanghai Composite gained
0.2% and Japan's Nikkei 225 climbed 0.8%.
The yield on the 10-year U.S. Treasury climbed slightly to
1.940% from 1.930% after the long weekend. Bond markets were closed
Monday. Yields rise when prices fall.
In currencies, the British pound fell 0.2% against the U.S.
dollar, paring back some gains made Monday after Nigel Farage's
Brexit Party said it won't contest Conservative-held seats in the
December election, decreasing the likelihood of a hung
Parliament.
Write to Caitlin Ostroff at caitlin.ostroff@wsj.com
(END) Dow Jones Newswires
November 12, 2019 07:04 ET (12:04 GMT)
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